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Aerope Space

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Submitted By aimeenguyen
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AEROSPACE MANUFACTURING INDUSTRY

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GM 105
Professor Hatton
December 11, 2009
___

Report Completed By:
Sarah Gregory
Leslie Horton
Staci Miles
Lauren Rolson
Marcin Skubala

TABLE OF CONTENTS

INTRODUCTION 4

BACKGROUND 4

DOMINANT ECONOMIC INDICATORS 5

1. Market Size 5 2. Scope of Competitive Rivalry 6 3. Number of Companies in the Industry 7 4. Customers 8 5. Ease of Entry/Exit 8 6. Technology/Innovation 9 7. Product Characteristics 10 A. Government 10 B. Commercial Aircraft 10 8. Scale Economies 11 A. Internal 11 B. External 12 9. Experience Curve Effects 12 10. Capacity Utilization 13 11. Industry Profitability 13

SIX FORCES OF COMPETITION 14

1. Threat of New Entrants 14 2. Bargaining Power of Suppliers 16 3. Bargaining Power of Buyers 16 4. Threat of Substitute Products/Services 17 5. Intensity of Rivalry among Competitors 17 6. Relative Power of other Stakeholders-Unions 18

COMPETITIVE POSITION OF MAJOR AEROSPACE COMPANIES 18

COMPETITOR ANALYSIS OF MAJOR AEROSPACE COMPANIES 20

Boeing Co. 20 Lockheed Martin Corporation 21 Northrop Grumman Corporation 23 Raytheon Co. 24 Other Manufacturers 25 Airbus 25 United Technologies 26

KEY SUCCESS FACTORS 26

Reducing Costs 26 Maintaining Access to Foreign Markets 27

INDUSTRY PROSPECTS AND OVERALL ATTRACTIVENESS 29

Factors Making the Industry Attractive 29 Factors Making the Industry Unattractive 31 Special Industry Problems and Issues 32 Profit Outlook 33 “Micro Jet” Airplanes 33

CONCLUSION 35

Works Cited 37

Appendix A. Aircraft Information Fixed-Wing Aircraft 38

INTRODUCTION

The accomplishments and advancements in the aerospace manufacturing industry over the last century since the Wright Brothers made their first

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